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Mahindra & Mahindra Limited — Q3 FY24
M&M reported a solid Q3 FY24 with consolidated PAT up 34% YoY (excluding one-offs), driven by strong auto performance.
bullish
high
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M&M reported a solid Q3 FY24 with consolidated PAT up 34% YoY (excluding one-offs), driven by strong auto performance. SUV revenue market share reached 21% (number one), and LCV share stood at 49.6%. Auto PBIT surged 91% YoY (excluding prior-year impairment). Farm equipment revenue was flat, with tractor margins at 16.9% (impacted by 70bps World Cup spend). Management guided for auto industry UV growth of 10-12% and M&M SUV growth in mid-to-high teens for FY25. Key risks include rural demand weakness and potential supply chain disruptions from Red Sea issues.
M&M ने तीसरी तिमाही में शानदार प्रदर्शन किया। कंपनी का कुल मुनाफा पिछले साल की तुलना में 34% बढ़ा, जिसकी मुख्य वजह गाड़ियों की जबरदस्त बिक्री रही। एसयूवी बाजार में उनकी हिस्सेदारी 21% हो गई है, जो सबसे ज्यादा है। छोटे वाणिज्यिक वाहनों में उनकी हिस्सेदारी 49.6% रही। ट्रैक्टर का कारोबार स्थिर रहा, लेकिन मुनाफा 16.9% रहा, जिस पर वर्ल्ड कप खर्च का थोड़ा असर पड़ा। कंपनी को उम्मीद है कि अगले साल एसयूवी की बिक्री 10-12% बढ़ेगी, और उनकी खुद की बिक्री उससे भी ज्यादा बढ़ेगी। हालांकि, गांवों में कमजोर मांग और लाल सागर के रास्ते में आपूर्ति में रुकावट जैसे जोखिम हैं।
Promises0 met · 2 missedRisks4 trackedTranscriptfull text
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Rural demand weakness
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SUV Revenue Market Share
21%
+?pp YoY
M&M achieved number one position in SUV revenue market share for Q3 and YTD.
LCV Market Share (<3.5T)
49.6%
+?pp YoY
Strong performance in LCV segment with near-50% market share.
SUV Bookings
226,000
down sequentially
Bookings declined as deliveries improved; management sees this as positive for growth.
Tractor Industry Growth (FY24)
-5%
-5% YoY
Management expects tractor industry to decline ~5% for FY24, with Q4 at -10%.
What Changed vs Last Quarter
NEW
SUV volume growth mid-to-high teens in FY25
M&M expects to grow faster than the UV industry (SIAM forecast 10-12%), targeting mid-to-high teens growth.
NEW
Tractor industry Q4 FY24 decline of 10%
Management guided for tractor industry to decline 10% in Q4 FY24, with full-year decline around 5%.
NEW
Farm machinery breakeven in 1.5-2 years
Farm machinery business expected to break even in about 1.5 to 2 years with current growth plans.
UPDATED
Auto capacity to reach 49,000/month by Q4 FY24
Capacity expansion on track to 49,000 units per month by end of current quarter, though near-term volumes may be impacted by XUV300 ramp-down.
DROPPED
Farm machinery revenue growth target of ~40% for FY24
Management expects farm machinery revenue to grow about 40% for the full year, up from 35% in H1.
DROPPED
Mahindra Finance credit cost target of 1.5%-1.7% for FY24
Credit cost expected to decline from 2.3% in H1 to 1.5%-1.7% by year-end, driven by structural asset quality improvement.
DROPPED
Susten capacity target of 7 GW in 4 years
Susten plans to grow from 1.5 GW to 7 GW in 4 years, with 1 GW of bids already won in H1.
NEW RISK
Rural demand weakness
Tractor industry down ~5% due to weak rural sentiment; recovery depends on monsoon and government spending.
NEW RISK
Red Sea supply chain disruption
Analyst raised concern about 55-60 day delays; management downplayed impact but acknowledged potential cost and export delays.
NEW RISK
XUV700 order book decline
Bookings fell as deliveries improved; management sees this as positive but risk of demand softening if perception of long wait persists.
RISK GONE
World Cup sponsorship impact on Q3 margins
Management flagged a three-digit crore one-time expense in Q3 for World Cup sponsorship, which could pressure margins.
RISK GONE
EV adoption slower than expected in entry-level segment
XUV400 volumes are intentionally low due to planned upgrades, and the entry-level EV segment faces cost and demand challenges.
RISK GONE
Potential PLI certification delay for SUV EVs
M&M has not yet applied for final PLI certification for the XUV400, while a competitor has already received it, posing a competitive risk.
🤫 Topics management stopped discussing
Mentioned in Q1 FY24, Q2 FY24
Management expects farm machinery revenue to grow about 40% for the full year, up from 35% in H1.
Fast read
Guidance and risk preview
M&M expects to grow faster than the UV industry (SIAM forecast 10-12%), targeting mid-to-high teens growth.
Tractor industry down ~5% due to weak rural sentiment; recovery depends on monsoon and government spending.
View Risks →